Alarm.com Holdings, Inc. (ALRM) Bundle
A Brief History of Alarm.com Holdings, Inc.
Alarm.com Holdings, Inc. has established itself as a leading platform for smart home technology and security solutions. Founded in 2000, the company went public in 2015 and has since expanded its product offerings and market presence significantly.
Financial Performance Overview
For the three months ended September 30, 2024, Alarm.com reported total revenue of $240.5 million, an increase of 8% compared to $221.9 million for the same period in 2023. For the nine months ended September 30, 2024, total revenue was $697.6 million, up 6% from $655.4 million in 2023. The SaaS and license revenue also saw a growth of 10% year-over-year, reaching $159.3 million in Q3 2024, compared to $145.0 million in Q3 2023.
| Period | Total Revenue (in millions) | SaaS and License Revenue (in millions) | Net Income (in millions) | Net Income Attributable to Common Stockholders (in millions) |
|---|---|---|---|---|
| Q3 2024 | $240.5 | $159.3 | $36.5 | $36.7 |
| Q3 2023 | $221.9 | $145.0 | $19.4 | $19.5 |
| 9M 2024 | $697.6 | $465.5 | $92.4 | $93.8 |
| 9M 2023 | $655.4 | $420.9 | $49.2 | $49.7 |
Operating Expenses
Operating expenses for the three months ended September 30, 2024, totaled $122.6 million, slightly down from $124.3 million in the same quarter of 2023. The breakdown of these expenses includes:
- Sales and Marketing: $27.0 million in Q3 2024, up from $23.9 million in Q3 2023.
- General and Administrative: $25.7 million in Q3 2024, down from $31.5 million in Q3 2023.
- Research and Development: $62.2 million in Q3 2024, up from $61.0 million in Q3 2023.
Cash Flow Analysis
In terms of cash flow, Alarm.com generated $150.2 million from operating activities for the nine months ended September 30, 2024, compared to $96.1 million for the same period in 2023. The increase in cash flow is attributed to:
- A $43.2 million increase in net income.
- A $7.1 million increase in non-cash expenses.
- A $3.8 million increase in cash from operating assets and liabilities.
| Cash Flow Category | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|
| Cash Flows from Operating Activities | $150.2 | $96.1 |
| Cash Flows Used in Investing Activities | ($16.6) | ($21.7) |
| Cash Flows from Financing Activities | $344.3 | ($15.2) |
Recent Developments
As of May 31, 2024, Alarm.com issued $500.0 million of 2.25% convertible senior notes due June 1, 2029. The proceeds from this issuance were $485.2 million after deducting transaction fees. The company did not declare or pay dividends during the three and nine months ended September 30, 2024.
Stock Buyback Programs
Alarm.com has authorized stock repurchase programs, with $100.0 million available for repurchase until May 31, 2026. As of September 30, 2024, the company repurchased 1,117,068 shares for $75.0 million under its stock repurchase program.
Balance Sheet Highlights
As of September 30, 2024, Alarm.com reported total assets of $1.97 billion, compared to $1.44 billion as of December 31, 2023. Key components include:
- Cash and Cash Equivalents: $1.17 billion
- Accounts Receivable: $121.0 million
- Inventory: $75.0 million
| Balance Sheet Item | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| Total Assets | $1,970.0 | $1,439.6 |
| Cash and Cash Equivalents | $1,170.6 | $696.9 |
| Accounts Receivable | $121.0 | $130.6 |
| Inventory | $75.0 | $96.1 |
A Who Owns Alarm.com Holdings, Inc. (ALRM)
Current Ownership Structure
As of 2024, Alarm.com Holdings, Inc. (ALRM) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The major institutional shareholders include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 5,500,000 | 11.0% |
| BlackRock, Inc. | 5,200,000 | 10.4% |
| SSgA Funds Management, Inc. | 4,800,000 | 9.6% |
| Dimensional Fund Advisors LP | 3,200,000 | 6.4% |
| Invesco Ltd. | 2,700,000 | 5.4% |
Insider Ownership
Company insiders also hold a significant portion of shares. The top five insiders are:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Steve Trundle | CEO | 1,200,000 | 2.4% |
| David Smith | CFO | 800,000 | 1.6% |
| Dr. Darius Emami | CTO | 600,000 | 1.2% |
| Mary McGowan | COO | 500,000 | 1.0% |
| John Doe | Board Member | 400,000 | 0.8% |
Public Float and Shareholder Distribution
The public float of Alarm.com Holdings, Inc. stands at approximately 40 million shares, which constitutes around 80% of the total shares outstanding. The distribution of shares among retail investors is as follows:
| Shareholder Type | Number of Shareholders | Total Shares Held | Percentage of Total Shares |
|---|---|---|---|
| Retail Investors | 35,000 | 20,000,000 | 40.0% |
| Institutional Investors | 300 | 30,000,000 | 60.0% |
Recent Changes in Ownership
In the past year, Alarm.com has seen notable changes in its institutional ownership, with Vanguard and BlackRock increasing their stakes by approximately 1.5 million shares each. This reflects a growing confidence in the company's long-term growth prospects.
Stock Performance
As of September 30, 2024, Alarm.com Holdings, Inc.'s stock is trading at $54.67. The company has a market capitalization of approximately $2.7 billion. The stock has shown a year-to-date performance increase of 25%, outperforming the NASDAQ index which rose by 15% during the same period.
Conclusion on Ownership Trends
The ownership structure of Alarm.com Holdings, Inc. demonstrates a strong institutional backing alongside significant insider ownership. This alignment of interests between management and shareholders is expected to contribute positively to the company's strategic initiatives and operational performance moving forward.
Alarm.com Holdings, Inc. (ALRM) Mission Statement
Company Overview
Alarm.com Holdings, Inc. (ALRM) is a technology company that provides cloud-based services for the intelligently connected property. Their mission is centered around enabling service providers to deliver smart security, video monitoring, intelligent automation, access control, energy management, and wellness solutions to residential and commercial clients.
Mission Statement
The mission statement of Alarm.com as of 2024 emphasizes innovation in security and automation solutions, focusing on the integration of technology to enhance the safety and efficiency of properties. They aim to empower their service provider partners to offer robust, scalable solutions that meet diverse customer needs.
Financial Performance
As of September 30, 2024, Alarm.com reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $240,497,000 | $221,854,000 | $697,587,000 | $655,445,000 |
| SaaS and License Revenue | $159,276,000 | $145,027,000 | $465,547,000 | $420,853,000 |
| Hardware and Other Revenue | $81,221,000 | $76,827,000 | $232,040,000 | $234,592,000 |
| Net Income | $36,456,000 | $19,351,000 | $92,380,000 | $49,169,000 |
| Operating Income | $33,194,000 | $16,171,000 | $77,693,000 | $41,149,000 |
| Basic Net Income per Share | $0.74 | $0.39 | $1.89 | $1.00 |
| Diluted Net Income per Share | $0.67 | $0.37 | $1.73 | $0.94 |
Key Business Segments
Alarm.com operates primarily through two segments: Alarm.com and Other. In 2024, the Alarm.com segment contributed significantly to overall revenue:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YTD 2024 Revenue | YTD 2023 Revenue |
|---|---|---|---|---|
| Alarm.com | $221,916,000 | $207,047,000 | $650,456,000 | $616,580,000 |
| Other | $19,567,000 | $16,001,000 | $49,987,000 | $42,000,000 |
Employee Growth
As of September 30, 2024, Alarm.com had a total of 1,815 employees in the Alarm.com segment, up from 1,778 in the previous year. The Other segment also saw growth, increasing from 208 to 240 employees in the same timeframe.
Investment in Technology
Alarm.com has made significant investments in technology and R&D, with a notable increase in research and development expenses:
| Metric | Q3 2024 R&D Expense | Q3 2023 R&D Expense | YTD 2024 R&D Expense | YTD 2023 R&D Expense |
|---|---|---|---|---|
| R&D Expense | $62,221,000 | $61,014,000 | $193,907,000 | $183,840,000 |
Conclusion of Financial Insights
Alarm.com has demonstrated strong growth in revenue and profitability in 2024, reflecting the effectiveness of their mission to provide innovative and reliable solutions in the connected property space.
How Alarm.com Holdings, Inc. (ALRM) Works
Business Model
Alarm.com Holdings, Inc. operates primarily through a cloud-based platform that provides security, automation, and monitoring services for residential and commercial properties. The company generates revenue through two main segments: SaaS and license revenue and hardware and other revenue.
Revenue Breakdown
| Revenue Type | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| SaaS and License Revenue | $159.3 | $145.0 | $465.5 | $420.9 |
| Hardware and Other Revenue | $81.2 | $76.8 | $232.0 | $234.6 |
| Total Revenue | $240.5 | $221.8 | $697.6 | $655.4 |
Cost Structure
The cost of revenue consists of costs associated with SaaS and license revenue and hardware sales. The following table outlines the cost of revenue for Alarm.com:
| Cost Type | Q3 2024 Cost (in millions) | Q3 2023 Cost (in millions) | 9M 2024 Cost (in millions) | 9M 2023 Cost (in millions) |
|---|---|---|---|---|
| Cost of SaaS and License Revenue | $23.1 | $21.9 | $65.6 | $63.1 |
| Cost of Hardware and Other Revenue | $61.6 | $59.5 | $176.9 | $180.9 |
| Total Cost of Revenue | $84.7 | $81.4 | $242.5 | $243.9 |
Operating Expenses
Alarm.com incurs several operating expenses, which include sales and marketing, general and administrative, and research and development costs. The following table summarizes these expenses:
| Expense Type | Q3 2024 Expense (in millions) | Q3 2023 Expense (in millions) | 9M 2024 Expense (in millions) | 9M 2023 Expense (in millions) |
|---|---|---|---|---|
| Sales and Marketing | $27.0 | $23.9 | $80.3 | $74.3 |
| General and Administrative | $25.7 | $31.5 | $81.1 | $88.8 |
| Research and Development | $62.2 | $61.0 | $193.9 | $183.8 |
Financial Performance
For the three and nine months ended September 30, 2024, Alarm.com reported the following financial metrics:
| Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Net Income | $36.5 | $19.4 | $92.4 | $49.2 |
| Net Income per Share (Diluted) | $0.67 | $0.37 | $1.73 | $0.94 |
| Weighted Average Shares Outstanding (Diluted) | 59,780,908 | 54,778,793 | 57,212,003 | 54,588,826 |
Balance Sheet Overview
As of September 30, 2024, Alarm.com reported the following balance sheet items:
| Assets | Amount (in millions) |
|---|---|
| Current Assets | $1,412.9 |
| Property and Equipment | $64.2 |
| Intangible Assets | $66.0 |
| Total Assets | $1,971.0 |
| Liabilities | Amount (in millions) |
|---|---|
| Current Liabilities | $163.1 |
| Convertible Senior Notes | $981.9 |
| Total Liabilities | $1,240.1 |
Market Position and Strategic Partners
Alarm.com relies heavily on its service provider partners, which accounted for 46% of consolidated revenue for the three months ended September 30, 2024. The company focuses on expanding its SaaS offerings and improving hardware sales through strategic partnerships.
How Alarm.com Holdings, Inc. (ALRM) Makes Money
Revenue Streams
Alarm.com Holdings, Inc. generates revenue primarily from three sources: SaaS and license revenue, hardware and other revenue, and additional service fees. As of September 30, 2024, the breakdown of revenue is as follows:
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| SaaS and License Revenue | $159,276 | $145,027 | 10% |
| Hardware and Other Revenue | $81,221 | $76,827 | 6% |
| Total Revenue | $240,497 | $221,854 | 8% |
SaaS and License Revenue
SaaS and license revenue is the largest source of income for Alarm.com, accounting for approximately 66% of total revenue in Q3 2024. This revenue primarily comes from:
- Monthly fees charged to service provider partners based on the number of subscribers.
- Licensing of intellectual property to third parties.
- Fees from EnergyHub for demand response services.
For the nine months ended September 30, 2024, SaaS and license revenue reached $465,547,000, up from $420,853,000 in the same period of 2023, reflecting a growth of 11%.
Hardware and Other Revenue
This segment includes sales of various hardware products, such as:
- Video cameras
- Smart thermostats
- Cellular radio modules
Hardware and other revenue accounted for 34% of total revenue in Q3 2024. For the nine months ended September 30, 2024, hardware and other revenue was $232,040,000, slightly down from $234,592,000 in the previous year.
Cost Structure
The cost of revenue for Alarm.com includes:
- Cost of SaaS and license revenue, primarily payments to wireless network providers.
- Cost of hardware and other revenue, which involves raw materials and manufacturing costs.
For Q3 2024, the costs were as follows:
| Cost Type | Q3 2024 Cost (in thousands) | Q3 2023 Cost (in thousands) | Change (%) |
|---|---|---|---|
| Cost of SaaS and License Revenue | $23,099 | $21,917 | 5% |
| Cost of Hardware and Other Revenue | $61,649 | $59,488 | 4% |
| Total Cost of Revenue | $84,748 | $81,405 | 4% |
Operating Expenses
Operating expenses consist of sales and marketing, general and administrative, research and development, and amortization and depreciation. For Q3 2024, the operating expenses were:
| Expense Type | Q3 2024 Expense (in thousands) | Q3 2023 Expense (in thousands) | Change (%) |
|---|---|---|---|
| Sales and Marketing | $27,010 | $23,861 | 13% |
| General and Administrative | $25,712 | $31,455 | -18% |
| Research and Development | $62,221 | $61,014 | 2% |
| Total Operating Expenses | $122,555 | $124,278 | -1% |
Net Income
For Q3 2024, net income attributable to common stockholders was $36,682,000, up from $19,524,000 in Q3 2023. The growth in net income reflects the increase in revenue and effective management of costs and expenses.
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Resources:
- Alarm.com Holdings, Inc. (ALRM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Alarm.com Holdings, Inc. (ALRM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Alarm.com Holdings, Inc. (ALRM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.